Oil Rises to 89.55 Boosted by US Jobs Data

Crude oil futures rose on Friday, buoyed by better than forecast U.S. jobs data that improved sentiment about the economic prospects of the world’s largest oil consumer, while worries about supply also provided support.

Brent crude gained $1.40 cents to $107.30 per barrel by 9:06 a.m. EDT (1306 GMT). It was on track for its highest close in two weeks. U.S. oil rose $2.42 cents to $89.55.

A survey of U.S. employers showed 163,000 jobs were created last month, the most since February, the Labor Department said on Friday. The reading was higher than any forecast in a Reuters poll.

The jobless rate, however, rose slightly from 8.2 percent in June and analysts said that was likely to keep speculation of further monetary stimulus for the economy from the U.S. Federal Reserve intact.

Worries about tighter supply caused be maintenance in the North Sea, Tropical Storm Ernesto in the Caribbean Sea and increasing tension in the Middle East have also encouraged investors to buy into oil.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza